Checkpoint 3

1. (TCOs E, I) What is the difference between a push marketing strategy and a pull marketing strategy? Explain how each of these strategies work. (Points : 5)

The difference between push strategy and pull strategy is that push strategy “uses the manufacturer’s sales force, trade promotion money or other means to induce intermediaries to carry, promote, and sell the product to end users.”

The pull strategy “the manufacturer uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries, thus inducing the intermediaries to order it.”

Manufacturers would use the push strategy where there is low brand loyalty in a category, the product is an impulse item and the product benefits are well understood. For example the company that manufacturers the Avian drug for the flu advertises heavily on TV and the internet during the flu season. This is an example of the push strategy is to induce intermediaries to carry the drug and sell the product to end users such as pharmacies and hospitals.

An example of a pull strategy is when a company like Model decides to discontinue carrying the nike shoes. The company, Nike, will use the pull strategy by advertising and using promotional discount coupons and mail it to the customers. The customers will go to Model with these promotional discount coupons demanding the Nike shoes. The demand for those Nike shoes will be so great that Model is persuaded to order and carry the Nike shoes.

(Marketing Management, 13th Edition p. 410)

2. (TCOs E, I) Describe channel conflict and provide an example. (Points : 5)

Based on my reading in chapter 15, page 431 of our textbook, conflicts can occur at various channels. In a vertical channel, conflict can arise between different levels within the same channel. For example, Apple Inc. can come into conflict with its Apple stores in terms of pricing or advertising. The horizontal channel can encounter conflict between...